Chapter 5

Management by means

putting more emphasis on the processes used to make sales than on the sales goals themselves

Formulator

Huifen tends to skip from one idea to the next when she is thinking about strategy.

Middle managers

Tactical goals and plans are the responsibility of middle managers, such as the heads of major divisions or functional units

Plan

a blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions, specify today's means

Tactical Goals/Plans

a broad higher-level mission, the desired future outcomes of the major subunits of the organization

Goal

a desired future circumstance or condition that the organization attempts to realize, specify future ends

Planning process starts with

a formal mission

Operational goals

are the precise, measurable outcomes expected from departments, work groups, and individuals

Planning

determining the organization's goals and defining the means for achieving them.

Frontline managers and supervisors

develop operational goals that focus on specific tasks and processes and that help meet tactical and strategic goals

Top managers

typically responsible for establishing strategic goals and plans that reflect a commitment to both organizational efficiency and effectiveness

competitive advantage

what sets the organization apart from others and provides it with a distinctive edge for meeting customer or client needs in the marketplace

Division manager

will formulate operational goals

implementor

Grace is highly committed to carrying out strategies so that goals are met.

Business-level strategy

Managers who are analyzing how best to compete within a given industry are concerned with

Operational plans

identify the specific procedures or processes needed at lower levels of the organization, such as individual departments and employees

Formal mission

is the basis for the strategic level of goals and plans, which in turn shapes the tactical (divisional) level and the operational (departmental) level.

corporate level strategy

managers consider what proportion of the firm's portfolio of businesses should be in different industries.

management by objectives

set goals, developed action plans, reviewed progress and took corrective action as needed, and appraised performance

strategy

the plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals